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WASHINGTON, Sept 24- Sales of new U.S. single-family homes surged in August and hit their highest level in more than six years, offering confirmation that the housing recovery remains on course. The Commerce Department said on Wednesday sales jumped 18.0 percent to a seasonally adjusted annual rate of 504,000 units.

The PHLX Housing index was down 0.1 percent after earlier falling as much as 1.3 percent on the back of results at KB Home. KB Home fell 6.1 percent to $15.92 following third-quarter earnings and sales that missed expectations. D.R. Horton Inc fell 0.4 percent to $21.20 while Beazer Homes was off 0.7 percent at $17.80.

Providing support was a renewed pledge by European Central Bank President Mario Draghi to keep monetary policy loose for an extended period to push inflation in the euro zone closer to the targeted two percent level.

Providing support was a renewed pledge by European Central Bank President Mario Draghi to keep monetary policy loose for an extended period to push inflation in the euro zone closer to the targeted two percent level.